THE chances of a July hike in interest rates increased after it emerged borrowers came within a whisker of a back-to-back rise earlier this month.

Bank of England policymakers voted by the slimmest of majorities to hold interest rates at 5.5 per cent in June, minutes of their two-day meeting have revealed.

The five-to-four decision of the Bank's Monetary Policy Committee to keep rates unchanged surprised analysts and added weight to expectations of a fifth rise in 11 months in July.

Members voting for a back-to-back rate rise after May's quarter-point increase included Governor Mervyn King, pictured, who was outvoted for the first time since August, 2005, the minutes showed.

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